Prices 'not expected to fall'

House prices will not fall sharply in the coming months, contrary to some market speculation, Savills has advised.

The firm has said that the UK property market as a whole will remain in good shape, adding that, if anything, a restriction on riskier lending would help it in the long-term.

The reduction in the number of high-risk borrowers in the market would help prevent the sector from "overheating", the firm suggested.

"In a way this [credit squeeze] is a short, sharp shock to the markets, which may put it on a sound footing going forward [...] it removes the risk of overheating," advised Savills residential research director Jim Ward.

"We're not anticipating major price falls. We may see small price falls in some areas where the market's been weakest over the last six months, but nothing of any great import," he added.

Earlier this month the Royal Institution of Chartered Surveyors (Rics) said that there was now a 'one in ten' chance of the market crashing.


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